Del Monte Loses Ksh 1.76 Billion Tax Battle Against KRA

The Kenya Human Rights Commission (KHRC) has welcomed a ruling by the Tax Appeals Tribunal that dismissed an appeal by Del Monte Kenya Ltd, upholding a massive Ksh1.76 billion tax assessment by the Kenya Revenue Authority (KRA).

According to the statement on X by KHRC, the ruling addresses the complex issue of profit shifting through related-party transactions hailed by advocates as a critical step toward economic justice for the Kenyan people.

“This ruling matters not just for tax reasons, but because it confirms a problem we have raised repeatedly. Large multinational corporations operating in Kenya use complex internal transactions to shift profits and reduce the taxes they should pay here, money meant to fund public services,” KHRC stated.

The KHRC stressed that this case represents the “looting” of public funds that could have been utilized to pay for necessary services, and that it is about more than just numbers.

The commission further broke down the Ksh 1.76 billion amount, pointing out that these funds could have funded: 1,760 classrooms in public schools, eight county hospitals fully furnished, 29 kilometers of roads with tarmac, for a full year, more than 3,500 teachers or nurses, and also multiple rural and peri-urban water projects estimated at Ksh 30–50 million per system.

“For years, ordinary Kenyans have been told to tighten their belts, pay more VAT, and accept new levies on basic goods and services. However, some of the country’s largest and most profitable corporations, like Del Monte, continue to aggressively contest paying billions in taxes. This is unjust and unacceptable,” KHRC highlighted.

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Systematic Issues and Future Audits

The tribunal’s ruling supports conclusions from the KHRC’s recent report, Who Owns Kenya?, which shows that corporate tax abuse fuels inequality and leaves essential public services underfunded.

“When revenue is lost through tax avoidance, children sit in overcrowded classrooms, patients go without medicine, and communities lack clean water, among other injustices. Corporate tax evasion weakens the State’s ability to deliver basic services and shifts the tax burden onto workers, small businesses, and low-income households,” KHRC stated.

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Demands for Transparency

Following this decision, the KHRC has urged the KRA and the National Treasury to take action.

They are calling for the establishment of a mandatory disclosure framework that would require all multinational firms to publicly disclose their earnings, profits, and taxes paid on a national level.

“It is time to put a stop to multinational corporations looting what rightfully belongs to the people of Kenya,” KHRC demanded.

KHRC continues, “KHRC demands that the National Treasury disclose to Kenyans what concrete measures it is taking to hold more multinational companies to account for corporate tax abuse, beyond isolated cases and court battles.”

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Part of the Kenya Human Rights Commission (KHRC) report on the ruling by the Tax Appeals Tribunal. Photo/ KHRC/X